Environmental life cycle costing (ELCC) is a tool which aggregates five categories of monetary costs across a project's life cycle: investment, operation, maintenance, end-of-life, and externalities. This paper summarises the results from the first two ELCC studies involving deep enhanced geothermal systems (EGS). The ReCiPe method was used to transform life cycle impact factors into economic costs for externalities. The two case studies are the pilot EGS project in Reykjanes, Iceland and the Vendenheim co-generation plant in France. The ELCC of the Reykjanes project is estimated in the range 14.47–15.78 million euros, with investment and well drilling projected to constitute 83% of these amounts. An ELCC in the range 91.90–113.97 million euros is estimated for Vendenheim, with the production plant, well drilling, and operations and maintenance costs accounting for the majority. The levelized costs of energy associated with Vendenheim (mean Є45.0/MWh/year) and Reykjanes (mean Є16.5/MWh/year) are at the lower end of the range normally reported for geothermal power projects. Although the case studies cannot be directly compared since Reykjanes involves the drilling of a single well and Vendenheim a co-generation plant and two wells, the outcomes suggest that deep EGS projects may involve cost-savings compared to conventional geothermal power ventures.
Bibliographical noteFunding Information:
This paper has been subject to funding from the European Union's Horizon 2020 research programme in relation to the DEEPEGS project (grant no. 690771).
- Deep geothermal energy
- Environmental impacts